§ 105-376. Taxing unit as purchaser at foreclosure sale; payment of purchase price; resale of property acquired by taxing unit. - North Carolina Statutes

§105‑376.  Taxing unit as purchaser at foreclosure sale; payment ofpurchase price; resale of property acquired by taxing unit.

(a)        Taxing Unit asPurchaser. – Any taxing unit (or two or more taxing units jointly) may bid at aforeclosure sale conducted under G.S. 105‑374 or G.S. 105‑375, andany taxing unit that becomes the successful bidder may assign its bid at anytime by private sale for not less than the amount of the bid.

(b)        Payment of PurchasePrice by Taxing Units; Status of Property Purchased by Taxing Units. – Anytaxing unit that becomes the purchaser at a tax foreclosure sale may, in thediscretion of its governing body, pay only that part of the purchase price thatwould not be distributed to it and other taxing units on account of taxes, penalties,interest, and such costs as accrued prior to the initiation of the foreclosureaction under G.S. 105‑374 or docketing of a judgment under G.S. 105‑375.Thereafter, in such a case, the purchasing taxing unit shall hold the propertyfor the benefit of all taxing units that have an interest in the property asdefined in this subsection (b). All net income from real property so acquiredand the proceeds thereof, when resold, shall be first used to reimburse thepurchasing unit for disbursements actually made by it in connection with theforeclosure action and the purchase of the property, and any balance remainingshall be distributed to the taxing units having an interest therein inproportion to their interests. The total interest of each taxing unit, includingthe purchasing unit, shall be determined by adding:

(1)        The taxes of theunit, with penalties, interest, and costs (other than costs already reimbursedto the purchasing unit) to satisfy which the property was ordered sold;

(2)        Other taxes of theunit, with penalties, interest, and costs which would have been paid in fullfrom the purchase price had the purchase price been paid in full;

(3)        Taxes of the unit,with penalties, interest, and costs to which the foreclosure sale was madesubject; and

(4)        The principal amountof all taxes which became liens on the  property after purchase at theforeclosure sale or which would have become liens thereon but for the purchase,but no amount shall be included for taxes for years in which (on the day as ofwhich property was to be listed for taxation) the property was being used bythe purchasing unit for a public purpose.

If the amount of net income andproceeds of resale distributable exceeds the total interests of all taxingunits defined in this subsection (b), the remainder shall be applied to anyspecial benefit  assessments to satisfy which the sale was ordered or to whichthe sale was made subject, and any balance remaining shall accrue to thepurchasing unit.

When any real property thathas been purchased as provided in this section is permanently dedicated to usefor a public purpose, the purchasing unit shall make settlement with othertaxing units having an interest in the property (as defined in this subsection)in  such manner and in such amount as may be agreed upon by the governingbodies; and if no agreement can be reached, the amount to be paid shall bedetermined by a resident judge of the superior court in the district in whichthe property is situated.

Nothing in this section shallbe construed as requiring the purchasing unit to secure the approval of otherinterested taxing units before reselling the property or as requiring thepurchasing unit to pay other interested taxing units in full if the net incomeand resale price are insufficient to make such payments.

Any taxing unit purchasingproperty at a foreclosure sale may, in  the discretion of its governing body,instead of following the foregoing provisions of this section, make fullpayment of the purchase price, and thereafter it shall hold the property assole owner in the same manner as it holds other real property, subject only totaxes and special assessments, with penalties, interest, and costs, to whichthe sale was made subject.

(c)        Resale of RealProperty Purchased by Taxing Units. – Real property purchased at a taxforeclosure sale by a taxing unit may be resold at any time (for such price asthe governing body of the taxing unit may approve) at a sale conducted in themanner provided by law for sales of other real property of the taxing unit.However, a purchasing taxing unit, in the discretion of its governing body, mayresell such property to the former owner or to any other person formerly havingan interest in the property at private sale for an amount not less than thetaxing unit's interest therein if it holds the property as sole owner or for anamount not less than the total interests of all taxing units (other thanspecial assessments due the  taxing unit holding title) if it holds theproperty for the benefit of all such units. (1939, c. 310, s. 1719; 1945,c. 635; 1947, c. 484, ss. 3, 4; 1951, c. 300, s. 1; c. 1036, s. 1; 1953, c.176, s. 2; 1955, c. 908; 1967, c. 705, s. 1; 1971, c. 806, s. 1.)